- Biden’s chief of staff said that Biden is investigating his “legal authority” to cancel student loan debts.
- Ron Klain said that Biden has asked Education Secretary Miguel Cardona to write a memo on the subject.
- He said that the memorandum will consider both the forgiveness of student loan debts and the cancellation of debts.
- Check out more stories on Insider’s business page.
White House Chief of Staff Ron Klein said in an interview with “Political Script” on Thursday that President Joe Biden is investigating his “legal authorization” to cancel student loan debts of up to $50,000.
Klein told Politico’s chief correspondent in Washington, Ryan Lizza (Ryan Lizza) that Biden has asked the Secretary of Education Miguel Cardona to write a memo that the president waived student loans. Legal authorization.
Klein said that he hopes that the memo will consider forgiving student loans and cancel debts of up to $50,000.
Biden will “study the legal authority,”
The amount of $50,000 is impressive because it is the campaign goal of Senator Elizabeth Warren of Massachusetts and a goal endorsed by Senate Majority Leader Chuck Schumer. Biden’s campaign was to cancel $10,000 per person. Warren and Schumer have been putting pressure on Biden to investigate higher amounts, even though he refused.
In February of this year, White House Press Secretary Jen Psaki (Jen Psaki) said that Biden will ask the Justice Department to review its power to cancel a $50,000 debt. The President separately stated that he would support the legislation proposed on the subject.
Warren said she didn’t want to go the legislative route. She said at a press conference last month: “We have a lot of things to do, including shifting to infrastructure and various other things.” “I have legislation to do this, but for me, this is not a reason for delay. The President can do this, and I very much hope that he will do it.”
Schumer refuted Biden’s remarks that he would not take administrative action. Schumer said at the press conference: “If it is legally produced in small quantities, it can be legally produced in large quantities.”
Biden’s Ministry of Education has been resolving the country’s $1.7 trillion student debt crisis. On March 18, Cardona cancelled the debts of approximately 72,000 borrowers who were defrauded by for-profit schools. On Monday, he cancelled the debts of more than 41,000 borrowers with complete and permanent disabilities. According to the Federal Family Education Loan Program, Cardona also extended the suspension of student debt repayment through September to 1.14 million borrowers and provided private loans.
Biden has not yet provided a deadline for reviewing its debt enforcement rights, but progressive lawmakers insist that this issue needs attention.
Schumer said on Monday: “We want to ask you, email, call, write to President Joseph Robinette Biden, and tell him you want to do this.”